Grid development

Updated: 11.01.2019

Author: Tim Sternkopf

Upon request of those interested in feeding in electricity, the grid operator is obliged to immediately optimise, boost and expand his grid in accordance with the best available technology in order to guarantee the purchase, transmission and distribution of electricity from renewable sources (§ 12 par. 1 sentence 1 EEG 2017). This obligation shall not only exist for grid operators whose grid the plants are immediately connected to, but also for upstream grids with a maximum voltage of 110 kV, provided that the expansion measures are necessary to guarantee the purchase, transmission and distribution of electricity (§ 12 par. 1 sentence 2 EEG 2017). Plant operators are entitled to the expansion of the grid only if it is economically reasonable (§ 12 par. 3 EEG 2017). Whether the expansion of the grid is economically reasonable in a given case will be determined by weighing the plant operator’s interests against the grid operator’s interests. The grid operator shall not make the conclusion of a contract a condition for the fulfilment of his obligation to expand the grid (§ 7 par. 1 EEG 2017).

Procedure

Process flow

There is no formal procedure for expanding the grid in order to connect plants.

Enforcement of claims

Claim for expansion:

A given plant operator may take legal action against the grid operator to claim the expansion of the grid if the connection of a plant or the export of electricity would otherwise be at risk.

Damages:

If the grid operator does not boost and expand his grid even though he is obliged to do so, those interested in feeding in electricity may demand compensation for the damage incurred. The grid operator is not liable to pay compensation, if he can prove that the violation of his obligation was neither deliberate nor negligent (§ 13 par. 1 EEG 2017).

Deadlines

The grid operator has to fulfil his obligation to expand the grid immediately, i.e. without undue delay. He may require additional time for licensing procedures. In certain cases, time-consuming administrative procedures may be necessary (e.g. for ground-mounted plants). The late delivery of parts required for the grid expansion and public protests may also cause considerable delay.

Obligation to inform

The grid operator is obliged to inform the plant operators, whether and to what extent he met his obligation to optimise, boost and expand the grid. However, he only has to do so, if there is evidence to substantiate the assumption that he did not fulfil his obligation and if this information is necessary to establish whether a plant operator is entitled to compensation against him (§ 13 par. 2 EEG 2017). According to § 12d EnWG the four TSOs are obliged to report on their progress with regard to grid expansion in a grid development plan, “Netzentwicklungsplan (NEP)”.

Distribution of costs

Consumers

The costs for optimising, boosting and expanding the grid are borne by the consumers.

Distribution mechanism

  • Grid operator – utility companies. The costs for optimising, boosting and expanding the grid are first borne by the grid operator (§ 17 EEG 2017). He may include the costs of grid expansion works in the grid use charges. Thus, he may pass on these costs to the utility companies.
  • Utility companies – final consumers. Utility companies can pass on the costs of the expansion of the grid, which they pay through the grid use charges, to the consumers by adjusting the electricity price accordingly.

Grid studies

Germany

Further information

Basic information on legal sources